Maersk’s expansion of East Port Said port could get IFC backing: The International Financial Corporation (IFC) is considering providing a loan of up to USD 175 mn to help the Suez Canal Container Terminal (SCCT) expand its existing container terminal at East Port Said port, the lender said on its website. The multilateral lender is expected to decide on the loan by 30 October.

Also included: an interest rate hedge. The IFC will also provide the SCCT with risk management products in the form of interest rate swaps with a loan-equivalent exposure of approximately USD 2 mn, the lender said.

ICYMI- This is part of Maersk’s expansion plans for the port: The Maersk-owned company is embarking on a USD 500 mn expansion of the East Port Said port that is expected to raise its capacity by 40%. The SCCT signed a contract with the Suez Canal Economic Zone in November that will put it in charge of building and operating a second container terminal at the port, as well as taking on responsibility for securing financing for the project. The IFC puts the cost of the project at USD 489 mn, of which 64% will be financed by internally generated cash flows and 36% via debt.

Refresher: The SCCT wants to expand the capacity of its existing 2.4k-meter container berth by 2.1 mn TEU to allow an annual capacity of 6.6 mn TEUs. This will significantly boost the port’s current capacity, access to port services, and operational efficiency. Expansion of the terminal could kick off at the end of this year, with its initial operations commencing in 2H 2025.

SOUND SMART- A TEU is the standard unit for a shipping container — the corrugated metal things you’ve seen being hauled on highways, stacked in ports, and carried on the deck of vessels. It stands for a twenty-foot equivalent unit.

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